2 ASX dividend shares with big growth potential

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Dividend shares offer ASX investors the opportunity to earn a decent income, with the added potential of capital appreciation courtesy of a rising share price.

Here are two ASX dividend shares that are growing nicely, and are paying fully franked dividends.

Inghams Group

The Inghams Group Ltd (ASX:ING) share price took a tumble recently after the chicken processor said that chief executive Mick McMahon will step down after four years at the helm.

In February, Inghams reported first half underlying earnings increased by 15 per cent on poultry volumes up 2.8 per cent. A fully franked interim dividend of 9.5 cents per share was declared.

Inghams says there is a strong underlying demand for poultry, supported by a shift in consumer preferences towards healthier and more affordable forms of protein.

New fund manager Firetrail likes the company, saying in an AFR article they thought Inghams shares were very cheap and the earnings are quite robust. Firetrail rated management very highly, although it should be noted that was before the news of the forthcoming change in CEO.

At $3.75, Inghams shares trade on a fully franked dividend yield of 5.1 per cent, or 7.2 per cent when grossed up for franking credits.

Nine Entertainment

The Nine Entertainment Co Holdings Ltd (ASX:NEC) share price is up 80 per cent over the past 12 months, making it one of the top ASX 200 performers.

Nine Entertainment is in an upgrade cycle, with strong ratings momentum coupled with excellent progress on premium and digital TV having the potential of driving earnings upgrades into the future.

The top performing QVG Opportunities Fund recently said traditional media was one of its favoured sectors, with Nine Entertainment still amongst the fund’s top 5 holdings.

At $2.46, Nine Entertainment shares trade on a fully franked dividend yield of 4.1 per cent, or 5.8 per cent when grossed up for franking credits. 

Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au